Business Law Vocabulary Flashcards Preview

Mortuary Law- Mors 200 Study Guide > Business Law Vocabulary > Flashcards

Flashcards in Business Law Vocabulary Deck (173):
1

The authority an agent is believed by third parties to have because of the behavior of the principal.

Apparent Authority

2

A creation of the tax codes in which shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status.

Subcharter S Corporation

3

A business owned by one person who is subject to claims of creditors.

Sole Proprietorship

4

Land and those objects permanently attached to land.

Real Estate (Real Property)

5

A negotiable instrument containing a promise to pay.

Promissory Note

6

Partner unknown to the public with no part in management.

Dormant Partner (Sleeping Partner)

7

Warranties imposed by law, arising automatically because the sale has been made.

Implied Warranties

8

Items, required or proper and useful, for sustaining a human being at an appropriate living standard. (Examples: food, clothing and shelter).

Necessaries

9

A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit.

Commercial Paper, Negotiable Instrument

10

Operates in the state that granted the charter.

Domestic Corporation

11

The written request which initiates a civil law suit.

Complaint (Petition)

12

Rate of interest which exceeds the maximum that is allowed.

Usury

13

The person hired to perform work and who is obligated both as to the work to be done and s to the manner in which it is to be done.

Employee

14

Rules of conduct commanding what is right and prohibiting what is wrong.

Law

15

The written request which initiates a civil law suit.

Petition (Complaint)

16

Federal legislation intended to promote competition among businesses by prohibiting restraint of trade.

Sherman Antitrust Act

17

The party to initiates, or makes, an offer.

Offeror

18

The relationship that exists between a person identified as a principal and another by virtue of which the latter may make contracts with third persons on behalf of the principal.

Agency

19

Those persons under legal age; in most states (but not all), the standard is under the age of eighteen.

Minor

20

The party who gives up possession, but not the title of personal property in a bailment.

Bailor

21

A notice given to a defendant, attaching the complaint and stating a time frame in which an answer must be filed or an appearance made.

Process (Summons)

22

The transfer of title to goods from the seller to the buyer for consideration called the price.

Sale

23

The transfer of possession, but not the title of personal property by one party to another, under agreement.

Bailment

24

Failure to exercise ordinary care; omission to do something which a reasonable prudent person would do under ordinary circumstances or the doing or something which a reasonable and prudent person would not do; the lack of due care (a breach of a legal duty to act carefully resulting in injury to another or damage to another's property).

Negligence

25

A permanent judicial order or decree forbidding the performance of a certain act.

Injunction

26

A business owned by one person who is subject to claims of creditors.

Proprietorship

27

An agreement which would be an unenforceable agreement, but due to circumstances, may be set aside by one of the parties.

Voidable Contract

28

Person who writes his or her name on the back of an instrument.

Indorser (Endorser)

29

Person not party to a contract, but whom parties intended to benefit.

Third Party Beneficiary

30

The person who executes any draft.

Drawer

31

The principle that the decision of a higher court should serve as a guide or precedent and control the decision of a similar case in the future.

Stare Decisis

32

An award paid to the injured party to cover the exact amount of their loss, but no more.

Compensatory Damages

33

The necessity that the parties desiring to enter into contracts meet all requirements.

Contractual Capacity

34

A contract which will be enforced by the court.

Valid Contract

35

A contract which consists of mutual promises to perform some future acts.

Bilateral Contract

36

An intended acceptance which changes or qualifies an original offer, and in effect, rejects that offer and becomes a new offer.

Counteroffer

37

The consideration stipulated by contract, generally expressed in monetary terms.

Price

38

Those contracts which must be in special form or produced in a certain way, such as under seal.

Formal Contract

39

A contract formed when an act is done in consideration for a promise.

Unilateral Contract

40

A more serious criminal offense that is punishable by death or imprisonment in a penitentiary for more than one year.

Felony

41

Official document detailing a defendant's defense.

Answer

42

Laws which seek to promote competition among business.

Antitrust

43

The actual and definite statement of a seller, either orally or in writing, at the time of the sale.

Express Warranties

44

The party appointed by the principal to enter into a contract with a third party on behalf of the principal.

Agent

45

The person, company or financial institution ordered to pay a draft.

Drawee

46

A person who is not a party to a contract to whom the promisor of a contract owes an obligation or duty.

Creditor Beneficiary

47

The substitution of a new party for one of the original parties to a contract, such that the prior contract terminates and a new one substitutes for it.

Novation

48

Recognized as the most important statute in business law, it includes provisions which regulate certain sales of goods and negotiable instruments.

Uniform Commercial Code

49

The carrying out or completion of some task.

Execution

50

The contracting of services rather than goods.

Service Contracts

51

Persons who are under the influence of alcohol to the extent that their judgement may be impaired.

Intoxication

52

Improper influence that is asserted by one dominant person over another, without the threat of harm.

Undue Influence

53

Guarantee made by a seller that an article, good, or service will conform to a certain standard or will be operated in a certain manner.

Warranty

54

An award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff.

Punitive Damages

55

The annulment or cancellation of an instrument, act, or promise by the one doing or making the offer.

Revocation

56

A means whereby one party in a contract conveys rights to another person, who is not a party to the original contract.

Assignment

57

A contract in which the parties express their intentions, either orally or in writing at the time of the agreement.

Express Contract

58

The party who acquires possession but not the title, of personal property by one party to another, under assignment.

Bailee

59

Anything that may be owned.

Property

60

A decision of a court of law.

Judgement

61

The acknowledgement by a bank of a receipt of money with an agreement of repayment.

Certificate of Deposit

62

A person in possession of an instrument.

Bearer

63

Stating an untrue fact.

Misrepresentation

64

One in possession of a commercial paper.

Holder

65

The individual who initiates a civil action.

Plaintiff

66

One who takes initial steps to form a corporation.

Promoter

67

Administrative step taken after an arrested person is brought to a police station, which involves entry of the person's name, the crime for which the arrest was made, and other relevant facts on the police "blotter," and which may also include photographing, fingerprinting and the like.

Booking

68

That which the promisor demands and receives as the price for a promise.

Consideration

69

Stock reacquired by a corporation.

Treasury Stock

70

A statute originally enacted by English Parliament, and now enacted in some form in all of the American states, listing certain types of contract which could only be enforced if in written form.

Statute of Frauds

71

An offense which is injurious to society as a whole.

Crime

72

An agreement to an offer resulting in a contract.

Acceptance

73

An indorsement which prevents the use of the instrument for anything except the stated use.

Restrictive Indorsement (Restrictive Endorsement)

74

Law enacted by a local government entity.

Ordinance

75

The voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit.

Partnership

76

An agreement of no legal effect.

Void Contract

77

Courts hearing cases appealed from a lower court.

Appellate Courts

78

An agreement made an executed in satisfaction of the rights one has from a previous contract.

Accord and Satisfaction

79

The intentional or reckless false statement of a material fact, upon which the injured party relied, which induced the injured party to enter into a contract, at his or her detriment.

Fraud

80

One who ships goods by common carrier.

Consignor

81

A written order signed by one person requiring the person to whom addressed to pay a particular sum of money, to order or bearer, on demand or at a certain time.

Draft

82

Confirming an act which was executed without authority or an act which was voidable.

Ratification

83

A less serious criminal offense, generally punishable by fine and/or imprisonment of less than one year.

Misdemeanor

84

Moveable tangible personal property.

Goods

85

Pretrial steps taken to learn the details of the case.

Discovery

86

A check for which the bank assures that the drawer has sufficient funds to make payment.

Certified Check

87

A breach of contract by a professional person; failure to perform a professional service with the ability and care generally exercised by others in the profession.

Malpractice

88

Request to a higher court to review a lower court's decision.

Appeal

89

The person who executes a promissory note.

Maker

90

One that is incorporated in a foreign country.

Alien Corporation

91

The amount of the damages stipulated in a contract to be paid in the event one party breaches the contract.

Liquidated Damages

92

Laws which are enacted by legislative bodies.

Statutes

93

Having no words other than the signature of the indorser.

Blank Indorsement

94

A third party beneficiary to whom no legal duty is owed and for whom performance is a gift.

Donee Beneficiary

95

To take into police custody.

Arrest

96

A person who deals in goods of the kind, or otherwise by occupation purports to have knowledge or skill peculiar to the practices or goods involved in the transaction.

Merchant

97

A law that restricts the period of time within which an action may be brought to court.

Statute of Limitations

98

Exceeding the maximum rate of interest which may be charged on loans.

Usurious

99

A corporation formed by individuals to carry out some non-governmental function.

Private Corporation

100

Canceling, annulling, avoiding.

Recission

101

Those individuals actively and openly engaged in the business and held out to everyone as a partner.

General Partner

102

The party making the assignment.

Assignor

103

The party who hires people to do certain work.

Employer

104

An order by a depositor on the bank to pay a sum of money to a payee.

Check

105

Those having title to one or more shares of stock in a corporation; combined, they represent ownership of the corporation.

Shareholders (Stockholders)

106

Partner active in a business unknown to the public.

Secret Partner

107

Court which conducts the original trial and renders its decision.

Trial Court

108

Customs which have become recognized by the courts as binding on the community.

Common Law

109

All property which is not real property.

Personal Property

110

Person who pretends to be a partner or permits others to represent him or her as a partner.

Nominal Partner

111

A designation which applies to a corporation in which an outstanding share of stock and managerial control are held by a limited number of people (often members of the same family).

Close (Closely Held) Corporation

112

The authority of an agent, stated in the document of agreement creating the agency.

Express Authority

113

An agent's authority to do things not specifically authorized in order to carry out express authority.

Implied Authority

114

The party to whom any negotiable instrument is made payable.

Payee

115

The person against whom legal action is brought.

Defendant

116

An individual who takes no active part in the management of a partnership, buy has capital invested in the business.

Silent Partner

117

Termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law.

Discharge

118

Recipient of the proceeds of a life insurance policy; one who inherits property as specified in a will.

Beneficiary

119

Partners who have their liability for the firm's debts limited to the amount of their investment.

Limited Partner

120

Any contract other than a formal contract, whether written, oral, or implied.

Simple Contract

121

An indorsement which limits the liability of the indorser.

Qualified Indorsement (Qualified Endorsement)

122

A private or civil wrong, other than by breach of contract, for which there may be action for damages.

Tort

123

A party who appoints a second party to serve as an agent.

Principal

124

One who is authorized to execute the principal's business of a particular kind, or all the principal's business at a particular place, if not all of one kind.

General Agent

125

A commercial paper made payable to bearer, i.e. the person having possession of such.

Bearer Paper

126

The goods specified by the buyer and seller.

Identified Goods

127

A body of persons elected by the stockholders to define and establish corporate policy.

Board of Directors

128

Goods which are not in existence at the time a contract is agreed to.

Future Goods

129

An indorsement which designates the particular person to whom payment is to be made.

Special Indorsement (Special Endorsement)

130

The body of law concerned with private or purely personal rights.

Civil Law

131

A token award to symbolize vindication of the wrong done to the plaintiff; generally, the award is $1.00.

Nominal Damages

132

A relationship of trust and confidence, such as that which exists between partners in a partnership.

Fiduciary

133

Laws dealing with crimes and the punishment of wrongdoers.

Criminal Law

134

Designation that applied when a corporation operates in any state other than where it is chartered.

Foreign Corporation

135

An agreement which at the current time is not enforceable by law.

Unenforceable Contract

136

Those contracts in which the terms have not been completely executed or fulfilled by the parties.

Executory Contract

137

One to whom goods are shipped by common carrier.

Consignee

138

Newest form of business ownership recognized by the U.S.; combines features of both the corporation and partnership.

Limited Liability Corporation

139

Evidences of ownership of personal property such as stock of corporations, checks and copyrights.

Intangible Personal Property

140

A check drawn on a bank's own funds and signed by a responsible bank official.

Cashier's Check

141

An equitable doctrine that prevents the promisor from revoking the promise when the promisee justifiably acts in reliance upon the promise to his detriment.

Promissory Estoppel

142

One authorized by the principal to execute specific act(s).

Special Agent

143

Persons who are afflicted with a serious mental disorder impairing their ability to function.

Insane

144

A situation in which one of the parties to a contract fails or otherwise refuses to perform the obligations established in the contract.

Breach of Contract

145

A corporation formed to carry out government functions.

Public Corporation

146

A contract remedy by which the court requires the breaching party to perform the contract.

Specific Performance

147

The person to whom an offer is made.

Offeree

148

A document of conveyance which provides written evidence of title to tangible personal property.

Bill of Sale

149

A person who becomes the holder of a negotiable instrument by indorsement which names him or her as the person to whom the instrument is negotiated.

Indorsee (Endorsee)

150

Those rules of conduct prescribed by a government and its agencies in regulating business transactions.

Business Law

151

A seller agrees to transfer title to goods to the buyer for a consideration (price) at a future time.

Contract to Sell

152

The contract existing between the cosignor (shipper) and the carrier.

Bill of Lading

153

The proposal to make a contract.

Offer

154

The act of transferring ownership of a negotiable instrument to another party.

Negotiation

155

A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit.

Negotiable Instrument (Commercial Paper)

156

The party to whom the assignment is made.

Assignee

157

Contracts in which the terms have ben fulfilled.

Executed Contract

158

One in which terms of the contract are implied by acts or conduct of the parties.

Implied Contract

159

Refusal to accept.

Rejection

160

An agreement between two or more competent persons which is enforceable by law.

Contract

161

One who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as to a means by which the contract is executed, except for specifications established in the contract.

Independent Contractor

162

A commercial paper made payable to the order of some named party; the word order or its equivalent must be used.

Order Paper

163

The signature or statement of purpose by the owner on the back of negotiable instrument, which indicates the future control of the instrument.

Indorsement (Endorsement)

164

Those goods which are, at the time of the contract, in existence and owned by the seller.

Existing Goods

165

A person in possession of a negotiable instrument who accepts the negotiable instrument in good faith and for value.

Holder in Due Course

166

Charging a person with a crime and asking for that person's plea.

Arraignment

167

A means of removing one's free will, obtaining consent by means of a threat to do harm to the person, his family, his property, or his earning power.

Duress

168

Power to act for someone else.

Authority

169

The repudiation of, or election to avoid, a voidable contract.

Disaffirmance

170

A business entity created by statutory law and owned by individuals known as stockholders.

Corporation

171

Stock that entitles owner vote.

Common Stock

172

Stock with an assigned face value

Par-value Stock

173

Stock giving special advantage as to payment of dividends, upon liquidation or both.

Preferred Stock